Fuel Excise Cut April 2026: 26.3c/Litre Off — How Long Does It Last?

From 1 April 2026, the federal government halved the fuel excise on petrol and diesel. That's a saving of 26.3 cents per litre at the bowser.

In real terms:

• 50-litre fill: saves $13.15 per tank
• Weekly commuter (60L/week): saves ~$15.78/week or $63/month
• Average household (2 cars): saves roughly $120-130/month

National average petrol prices were above $2.30/litre in late March before the cut. With the excise halved, prices should drop to around $2.04/litre — though actual savings depend on whether retailers pass the cut through.

The excise cut runs from 1 April to 30 June 2026 — exactly three months. After that, the full excise rate snaps back unless the government extends it.

The government has not committed to extending the cut beyond June. If petrol prices are still high, there'll be political pressure to extend — but don't count on it. Budget your fuel costs assuming the full excise returns from 1 July.

Already thinking about what happens after June? We covered that in our article on what happens when the fuel excise cut ends.

The ACCC is actively monitoring fuel retailers to make sure the excise cut is passed through to consumers. If you notice prices haven't dropped in your area:

• Report it to the ACCC via their fuel monitoring page
• Use fuel comparison apps (FuelCheck in NSW, FuelWatch in WA, MotorMouth nationally)
• Shop around — the difference between the cheapest and most expensive servo in the same suburb can be 30c/litre

The government also passed laws doubling penalties for fuel price misconduct to a maximum of $100 million per offence. Retailers who pocket the excise cut instead of passing it on face serious consequences.

Yes — but there are limits. Your employer can require you to attend a workplace, but they cannot:

• Refuse a reasonable flexible work request without genuine business grounds (if you're eligible under the Fair Work Act)
• Force you to pay for work-related travel between sites during the day — that's generally the employer's cost
• Deny you a travel allowance if one is specified in your award or agreement

If fuel costs are genuinely making it hard to get to work, consider requesting to work from home part of the week. You have a legal right to request flexible arrangements if you've been with your employer for 12+ months.

Check your entitlements with our take-home pay calculator to see how fuel costs impact your real earnings.

Generally, your daily commute is not tax deductible — the ATO considers that a private expense. But you may be able to claim fuel if:

• You travel between two workplaces during the day
• You carry bulky tools or equipment that can't be stored at work
• Your home is your base of operations (e.g., tradies, sales reps)

The ATO's cents-per-kilometre rate for 2025-26 is 88 cents/km (up to 5,000km). Keep a logbook if you want to claim more. Read our fuel tax deduction guide for the full breakdown.